Pinnacle Health System Tax-Sheltered Annuity (TSAT) Plan
SUMMARY OF KEY FEATURES
The Pinnacle Health System Tax-Sheltered Annuity (TSAT) Plan is designed to offer you a retirement plan with valuable features and tools to help you save for a more secure financial future. The TSAT Plan is a key component of the PinnacleHealth Retirement Program and your primary savings vehicle. The TSAT Plan provides eligible employees with the opportunity to save their own money in tax-advantaged ways, and to defer paying income tax on any investment earnings until they are withdrawn. The Plan also provides eligible employees with employer contributions after one year of service – and automatic payroll deductions, which make saving effortless.
Your enrollment in the plan is automatic and deferrals (i.e. contributions) will automatically begin unless you decline participation within 30 days following your date of hire. If automatically enrolled, you will be enrolled at a deferral rate of 3.0% of your eligible pay, which will be deducted from your paycheck and invested in the age-appropriate JPMorgan SmartRetirement Fund. Access the Investment Options page to access Fund Fact Sheets for all funds offered through the Plan.
(You may also elect to enroll immediately or choose a different investment option by contacting Prudential.)
EMPLOYEE DEFERRAL LIMITS: PRE-TAX AND ROTH CONTRIBUTIONS
You may contribute between 0% and 100% of your pay, up to $18,000 in 2017. Participating employees who are ages 50+ in 2017 may contribute up to $24,000. You may make either pre-tax contributions, Roth contributions – or both. With pre-tax contributions, you are not taxed on the money you contribute, but you do pay tax on your money at withdrawal. Roth contributions allow you to set aside after-tax dollars today and have the ability to withdraw the money and any earnings at retirement without paying federal income tax. In order for withdrawals to be made from Roth savings free of penalties and federal tax, Roth contributions must have started at least five tax years before the withdrawal AND your distribution must be: a) made on or after the date you attain age 59½; b) made to your beneficiary or your estate after your death; or c) attributable to your being disabled.
This feature will automatically increase your contribution amount over time
- Your contribution amount will increase by 1% on July 1 (unless you select a different amount or date), up to a maximum of 10% of your pay.
- If automatically enrolled, you will also be automatically signed up for Contribution Accelerator.
- You can opt in or out at any time.
CHANGING DEFERRALS & INVESTMENT OPTIONS
You can change the amount of your contributions, stop them altogether, and redirect your investment options at any time.
To be eligible for these contributions, you must be employed for one year and be at least 21 years of age and have a status of 0.4 FTE or above. When you become eligible for employer contributions:
- PinnacleHealth will make a non-elective contribution to your account equal to 2% of your compensation per pay period; and
- PinnacleHealth will make a matching contribution of $0.50 to your account for every $1.00 you contribute, up to 6% of your eligible pay. After five years of service, PinnacleHealth will contribute $0.67 to your account for every $1.00 you contribute, up to 6% of your eligible pay.
OWNERSHIP OF ASSETS
"Vesting" is a technical term that refers to your ownership of the money in your account.
- You are always 100% vested in your own contributions – as well as your employer's matching contributions.
- You are 100% vested in your employer's non-elective contributions after three years of service with at least 1,000 hours of service in each of those years.
The Plan offers various investment options, which have been selected by PinnacleHealth. You decide where your and your employer's plan contributions should be allocated. Complete information about all the Plan's investment options is available in the Investment section of this website.
ACCESSING MONEY WHILE EMPLOYED
You may be able to access money in your retirement plan account through a loan, an in-service withdrawal after age 59 ½, or a hardship withdrawal. (Note: Once you take a hardship withdrawal, you will not be able to make contributions to your account for six months. Hardship withdrawals are limited to employee deferrals and catch-up contributions.)
If your employment with PinnacleHealth ends –due to severance from employment, retirement, permanent disability, or death – you or your beneficiaries may choose to:
- keep your money in the Plan;
- roll it over to another qualified retirement plan;
- receive your account balance in the form of an annuity (An annuity pays you a regular income, usually monthly.);
- request other forms of payments, as allowed by PinnacleHealth; or
- withdraw your money in a lump sum.
Please note that withdrawals and distributions are subject to income taxes and potentially a 10% federal income tax penalty if taken before age 59½.
Distributions must begin on the latest date permitted by law, which is the April 1st following the year you either separate from service, or attain age 70½, whichever is later. You can select the distribution option from those outlined above. If you do not select a distribution option, your account will be paid in a lump sum.
Upon enrollment, you can designate a beneficiary or beneficiaries to receive any balance remaining at the time of your death. If you name someone other than your spouse as your beneficiary, your spouse must consent to your designation. You can change your beneficiary any time by visiting www.prudential.com/online/retirement.
TOOLS & RESOURCES
Online or on the phone, you have access to a wide variety of account management tools and educational resources from Prudential to help you plan for retirement, plus the personal attention of Larry Klesser, your onsite Retirement Counselor:
- Onsite Retirement Counselor. Contact Larry Klesser at 1-717-231-8006 or firstname.lastname@example.org OR Katie Calpin at 1-717-231-8391 or email@example.com
- www.prudential.com/online/retirement Through Prudential's intuitive, user-friendly secure website, you can review your retirement program information, including account balances, research your investment options and perform transactions 24/7.
- Toll-free phone number—800-458-6333. You can obtain account information, get daily investment performance and perform transactions through your telephone keypad 24/7.
- Personal help. Participant Service representatives are available toll-free at 800-458-6333, Monday through Friday, 8 a.m. to 9 p.m. ET to answer questions about your account or assist you with transactions.
- Educational website—www.PreparewithPru.com Learn the fundamentals of saving and investing for retirement such as getting the most out of your Plan, asset allocation, and managing debt and credit in an interactive, multimedia approach.
Larry Klesser and Katie Calpin are Participant Service Associates at Strategic Retirement Group, a Registered Investment Advisor and not affiliated with Prudential.
This summary describes the features of the PinnacleHealth Tax-Sheltered Annuity (TSAT) Plan. Should there be a conflict between this summary and the Plan Document, the Plan Document will be the final authority.
This information is designed to help you understand the potential advantages of tax-deferred savings and the specifics of how this plan works. We suggest that you and your personal financial and/or tax advisor carefully review this information to decide how this deferred compensation plan might fit into your financial planning strategies. Please note that Prudential Financial and its representatives are not tax advisors, financial planners and do not provide financial planning advice.
This Plan is administered by the Administrative Committee, which has discretionary authority to interpret and apply the Plan provisions, and make the rules necessary for its day-to-day operation.
Investors should consider the fund's investment objectives, risks, charges and expenses before investing. The prospectus, and if available the summary prospectus, contain complete information about the investment options available through your plan. Please call 1-800-458-6333 for a free prospectus and if available, a summary prospectus that contain this and other information about our mutual funds. You should read the prospectus and the summary prospectus, if available carefully before investing. It is possible to lose money when investing in securities.
Shares of the registered mutual funds are offered by Prudential Investment Management Services LLC (PIMS), Newark, NJ. PIMS is a Prudential Financial company. Prudential Retirement is a Prudential Financial business.